SHARES in Ewloe-based housebuilder Redrow jumped after the company revealed its founder, multi-millionaire business tycoon Steve Morgan, is back on board.

Mr Morgan, the Liverpool entrepreneur who founded builder Redrow in 1974, stepped into the role of deputy chairman and chairman designate this week.

The company also announced that after talks with leading shareholders, chief executive Neil Fitzsimmons was stepping down, although he will remain as an executive director until April 30, to effect a smooth transition.

Chairman Alan Bowkett, will stand down on June 30 at the end of the group’s fiscal year, allowing Mr Morgan to take over the role.

Mr Morgan made his move to return on March 3, when he increased his shareholding in Redrow to 29.9%.

The new team said it will continue to pursue Redrow’s cost reduction and cash generation targets.

Mr Bowkett said: “The discussions with Steve Morgan have been constructive and the board recognises that Steve's experience and enthusiasm can bring benefits toŠRedrow.”

Mr Morgan said: “Redrow is a tremendous business with a great heritage and I am passionate about ensuring the future success of the company in the face of the unprecedented challenges that confront the industry.”

Mr Fitzsimmons said: “I believe in the underlying strength of theŠRedrowŠbusiness and the decisive actions we have successfully implemented to address the current very challenging market conditions.

“I leaveŠRedrowŠin excellent hands as Steve has the track record and undoubted capabilities to build upon our strategy.”

The news of Mr Morgan’s return to the company prompted broker Panmure Gordon to lift its recommendation to “buy” from “hold” and investors took their cue.

“Mr Morgan is synonymous with success at Redrow, and in our view offers the group strong leadership in depressed market conditions,” said Panmure in a note to clients.

It added that the news Mr Morgan was back at the company “should be treated positively by the market” and it added it would not be surprised to see the company’s share price rally in the coming weeks.

Last autumn Mr Morgan tried to buy the homes division of Deeside-based David McLean, after that group went into administration.

He is believed to have tabled a bid of less than £30m through one of his companies, Harrow Estates, based at Preston Brook, near Runcorn.

But administrators handling the affairs of the David McLean group sold its homes’ business to a new company, Elan Homes, set up by the former senior management team at David McLean, headed by group finance director, John Kendrick.

Earlier this month, Ewloe-based Redrow reported underlying pre-tax losses of £21.2m in the six months to December 31, compared with profits of £35.8m a year earlier.